Laxmi Organic IPO is slated to hit capital markets next week — price band set at ₹129-130 a share

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Laxmi Organic IPO is slated to hit capital markets next week — price band set at ₹129-130 a share
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  • The three-day public issue will begin on March 15 and close on March 17.
  • Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India, with a market share of approximately 30% of the Indian ethyl acetate market.
  • The company’s profit grew by nearly 4.56% to ₹70.21 crore in FY20 (YoY).
The ₹600 crore initial public offering (IPO) of speciality chemical manufacturer Laxmi Organic Industries is scheduled to hit the capital markets on March 15.

The company has fixed a price band of ₹129-130 a share for its IPO. The three-day public issue will close on March 17. The company said it has decided to place pre-IPO placement by issuing 15.50 million equity shares aggregating up to ₹200 crore.

The company is a leading manufacturer of acetyl intermediates and specialty intermediates with almost three decades of experience in the large scale manufacturing of chemicals. Laxmi Organic is currently among the largest manufacturers of ethyl acetate in India, with a market share of approximately 30% of the Indian ethyl acetate market, according to Axis Capital.

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Laxmi Organic Industries IPO opens next week

ParticularsIssue details
Opens onMarch 15
Closes onMarch 17
Price band₹129-130 per share
Minimum bid 115 equity shares
Reservation for qualified institutional buyers50%
Reservation for non-institutional buyers15%
Reservation for retail investors35%

Once the IPO is concluded, the equity shares will be listed on both the exchanges — BSE and NSE. Axis Capital and DAM Capital are the book running lead managers for its public offering IPO.

Laxmi Organic Industries: All you need to know
  • The company has a diversified product portfolio in various high growth industries including pharma, agro chem, paints and coatings, printing, packaging, dyes and pigments.
  • The company has its business spread over 30 countries.
  • Laxmi Organic is the only manufacturer in India of diketene derivatives with a market share of approximately 55% in terms of revenue in fiscal year 2020. Diketene derivatives are used in the pharmaceutical, vitamin, agrochemical and pigment industries.
  • Laxmi Organic also proposes to diversify into the manufacturing of speciality fluorochemicals. They have recently acquired assets, including plant and machinery, design and operating paperwork.
  • Its revenue from operations increased by 12.59% to ₹1,568.52 crore in March 2019 (YoY). However, in March 2020, the revenue dipped 19% compared to the corresponding year-ago period.
  • However, the company’s profit grew by nearly 4.56% to ₹70.21 crore in FY20 (YoY).
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